Dutch-owned manufacturer secures agreement with Hongdu after disappointing 2002
MD Helicopters (MDHI) has joined the growing list of Western rotorcraft manufacturers seeking to makein-roads into the potentially large Chinese market through industrial co-operation. It has concluded a joint-venture deal with Hongdu to assemble the single-engined MD 500 and 600 series of helicopters in Nanchang, Jiangxi Province.
Hongdu MD Helicopters is a 60:40 venture between MD Helicopter's Dutch owner RDM Holdings - which is investing an initial $10 million to establish an assembly line - and the Chinese manufacturer.
The US-based company has secured 30 commitments in China for MD 500/600-series machines, but needs Chinese certification and a local assembly facility before converting the commitments into firm orders, says Joep van den Nieuwenhuyzen, RDM chairman and chief executive. MDHI hopes to begin assembly of the first helicopter kits supplied from the USA in March.
Among prospective operators are five city police forces and a number of tourist organisations. Guangdong General Aviation already operates an MD 500E for the Zhongshan public security bureau and over the next five years van den Nieuwenhuyzen sees a market for300 helicopters.
AgustaWestland and Eurocopter have been active in China several years, with the former assisting in development of the indigenous Chinese Medium Helicopter. Sikorsky is hoping for Chinese government approval by March for its joint venture with Shanghai Little Eagle to assemble up to 24 Schweizer 300CB/CBi and 333 light helicopters a year from 2004. Wuhan Helicopter is due to begin parts manufacture for Enstrom this year and licence-production of the F-28 and 280FX piston and 480 turbine machines within five years.
MDHI says the Hongdu deal follows "not a very good year", during which the company delivered only 15 helicopters. It lost money in 2002 for the first time since RDM acquired the business from Boeing in 1999 for $70 million.
Source: Flight International
